Honister Capital is cutting staff in a bid to reduce its operating expenses as a result of increased regulatory and trading costs.
An email sent to all advisers on August 18 said the firm is making cuts to reduce operating costs, which will affect business monitoring, adviser development, compliance, IT and customer support services.
Honister Capital is made up of advisory firms Burns Anderson, Sage Financial and Honister Partners, plus direct-to-consumer business Willis Owen.
The group made an oper-ating profit of £468,000 in the six months to March 31 this year compared with a £2.2m profit in the six months to March 31, 2010.
However, the advisory businesses made a combined loss of £710,000 compared with an operating profit of £1m the previous year. Willis Owen made an operating profit of £1.18m, down slightly from £1.2m.
Honister Capital chief exec-utive Richard Pearson says: “We have seen increased regulatory and trading costs in our advisory businesses over the last 12 months.
“We are carrying out an internal consultation to restructure the group. This will involve a reorganisation of some functions and reduction in staff numbers.”
In June, Honister Capital restructured its management team, with managing director of advisory Frank Gorrie appointed to the board and product and marketing director Jason Chapman and client and employee services director Lynn Smith joining the executive management team.
Strategy, product and commercial development director Alan Easter left the firm.